[Congressional Record Volume 153, Number 93 (Monday, June 11, 2007)]
[Extensions of Remarks]
[Pages E1244-E1245]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        THE JUBILEE ACT OF 2007

                                 ______
                                 

                           HON. MAXINE WATERS

                             of california

                    in the house of representatives

                         Thursday, June 7, 2007

  Ms. WATERS. Madam Speaker, I am proud to introduce the Jubilee Act 
for Responsible Lending and Expanded Debt Cancellation of 2007. This 
bill will expand existing debt cancellation programs for the world's 
poorest countries and ensure that the benefits from debt cancellation 
will not be eroded by future lending to these impoverished nations.
  Existing debt cancellation programs have freed up resources to reduce 
poverty in some of the world's poorest countries. Cameroon is using its 
savings of $29.8 million from debt cancellation in 2006 for national 
poverty reduction priorities, including infrastructure, social sector 
and governance reforms. Uganda is using its savings of $57.9 million on 
improving energy infrastructure to ease acute electricity shortages, as 
well as primary education, malaria control, healthcare, and water 
infrastructure. Zambia is using its savings of $23.8 million to 
increase spending on agricultural projects and to eliminate fees for 
healthcare in rural areas. However, there are many needy and deserving 
poor countries that have yet to benefit from the cancellation of their 
debts.
  The Jubilee Act will make 67 of the world's poorest countries 
eligible for complete debt cancellation by the United States, the World 
Bank, the International Monetary Fund (IMF), and other bilateral and 
multilateral creditors. In order to receive debt cancellation, the 
governments of these countries will be required to allocate the savings 
from debt cancellation towards spending on poverty-reduction programs. 
They will also have to engage interested parties within their 
societies, including a broad cross-section of civil society groups, in 
the spending allocation process; produce an annual report on this 
spending; and make it publicly available.
  Countries would be excluded from receiving debt cancellation under 
the Jubilee Act if they have an excessive level of military 
expenditures; provide support for acts of international terrorism; fail 
to cooperate on international narcotics control matters; or engage in a 
consistent pattern of human rights violations. Countries also would be 
excluded if they lack transparent and effective budget execution and 
public financial management systems to ensure that the savings from 
debt cancellation would be spent on reducing poverty.
  The Jubilee Act will establish a framework for responsible lending in 
order to preserve the benefits that debt cancellation has provided to 
poor countries and their people. The Jubilee Act requires the United 
States Secretary of the Treasury to take action to end the predatory 
practices of ``vulture funds,'' private investment funds that buy up 
the debts of poor countries at reduced prices just before these 
countries receive debt cancellation and then sue these countries to 
recover the original value of the debts plus interest. Finally, the 
Jubilee Act will require the Secretary of the Treasury to develop and 
promote policies to prevent bilateral, multilateral and private 
creditors from eroding the benefits of debt cancellation through 
irresponsible or exploitive lending.
  The Jubilee Act will expand debt cancellation to all needy and 
deserving poor countries

[[Page E1245]]

and preserve the benefits that debt cancellation has provided to 
impoverished people worldwide. I urge all of my colleagues to support 
this important legislation to reduce poverty through much needed debt 
cancellation reforms.

                          ____________________